Cendant Corporation’s “De-Merger”
Thursday, November 3, 2005
Cendant’s decision to split itself into four publicly traded companies has many folks wondering what Cendant will do next.
For what we can assume to be a wide variety of reasons, Cendant Corporation announced on October 24 that a plan has been approved which will ultimately separate Cendant into four separate publicly traded companies by next summer. Cendant itself describes the break-up as a strategy to increase shareholder value, while some cynically say that the giant conglomerate is insulating certain of its holdings from possible legal trouble. Regardless of the reasons why, Cendant has been very busy in the past few weeks, possibly accelerating the break-up and reorganizing its corporate structure.
As Cendant is one of the major forces in timeshare today, timeshare owners and prospective timeshare buyers would do well to keep up-to-date with these stories. Google News is a good resource, as one can track these stories by date, as they happen. Cendant’s original press release gives some details on the intent behind the de-merger as well as the possible future fate of these companies.
Don’t think this story affects you? Not only is Cendant heavily involved with timeshares around the world, this corporation also owns an impressive share of the global travel, lodging, and leisure industries. Cendant is a massive conglomerate which currently numbers a wide array of subsidiary companies among its holdings. Take a look at the Hoover’s fact sheet for Cendant Corp., and you’ll see what I mean.